References/Useful links:
• Website - Avalon USDa
• Documentation - CeDeFi CDP USDa | Avalon Labs Documentation
• Github Page - avalonfinancexyz · GitHub
• Twitter - x.com
Protocol Description:
Avalon is the leading CDP protocol built on Ethereum, BNB and Mantle, allowing users to deposit BTC wrappers like FBTC to mint USDa.
Avalon USDa has over $500M TVL and is ranked 3rd in CDP on DeFilama. https://defillama.com/protocol/avalon-usda#information
USDa is the overcollateralized stablecoin. sUSDa is the staked version of USDa with yield. The value of sUSDa will increase over time. The yield of sUSDa comes from the borrowing interest when users mint USDa. Users can stake USDa to get sUSDa atomically but have to wait 7 days to unstake. The peg of USDa is maintained by our USDaConvert module and arbitrage. In this module, users can deposit USDa to get back USDT at 1:1 ratio without any slippage. With this mechanism, users can make profit when USDa depegs. The USDT liquidity comes from our CeFi lenders. More information about how USDa works can be found here: CeDeFi CDP USDa | Avalon Labs Documentation
Currently FBTC is supported as collateral. FBTC is a wrapped BTC backed by Antalpha and Mantle. More information about FBTC can be found here:: https://docs.fbtc.com/.
Motivation:
Avalon is looking to seed a USDa/sUSDa stableswap pool on Curve as the major liquidity source of sUSDa. This allows sUSDa users to get access to USDa liquidity without waiting the 7-day unstaking period. This is crucial for sUSDa DeFi integration. For instance, setting up sUSDa Pendle pool will require this liquidity for users to instantly enter or exit PT positions. Another example is including sUSDa into lending protocol will require this liquidity for price oracle and liquidation. Deeper liquidity ensures that users can easily enter or exit sUSDa position, which is essential for the overall usability and attractiveness of the sUSDa within the DeFi ecosystem. To ensure the deep liquidity, Avalon is committed to growing pool liquidity through bribes and our own governance token emissions.
Specifications:
- Rights Control: Currently, key rights of USDa contracts are controlled by multi signature wallet with 5/6 setup.
- Audits: Audit reports for USDa could be found inside our docs: USDa Audits | Avalon Labs Documentation . The audits are conducted by top tier auditing firms including Slowmist, Blocksec and Salus to ensure the security of the protocol.
- Onchain Security: Apart from audits, Avalon employs Fuzzland as an onchain security guard which monitors USDa related smart contracts 24/7.
- Oracle: Liquidation of USDa loan relies on Chainlink oracle.
- Centralization Vector: Multisig wallet is utilized to do the daily operations of USDa and sUSDa.
- Market History: USDa and sUSDa have been able to maintain the peg since the launch. It has reached around $500M TVL recently.
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